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Types of Digital Ad Fraud Researched by Augustine Fou 2014
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Types of Digital Ad Fraud Researched by Augustine Fou 2014



There are many forms of digital ad fraud. Some are easy to commit, others are harder to commit. But bad guys skim value from every part of the value chain.

There are many forms of digital ad fraud. Some are easy to commit, others are harder to commit. But bad guys skim value from every part of the value chain.



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Types of Digital Ad Fraud Researched by Augustine Fou 2014 Types of Digital Ad Fraud Researched by Augustine Fou 2014 Presentation Transcript

  • Augustine Fou- 1 - Dr. Augustine Fou http://linkd.in/augustinefou June 2014 Types of Digital Ad Fraud
  • Augustine Fou- 2 - Display Ad Fraud Normal display ads Fraudulent display ads • Loaded on sites that no human users go to • Not viewable, not-in- view • More than 5 ads on a page • Ad impressions generated by bot (not human)
  • Augustine Fou- 3 - Ad Injection Source: http://adage.com/article/digital/bi g-ad-injection-scheme-hits- target-youtube-walmart/293088/ “Those behind this operation go by the name 215 Apps, sometimes known as Engaging Apps. They've built a network of browser extensions that promise consumers some sort of benefit, such as the ability to download streaming videos, but inject ads into sites across the web.” Target ad on top of Walmart.com
  • Augustine Fou- 4 - Search Ad Fraud buy eye cream online (expensive CPC keyword) fake site that serves search ads Olay.com ad in #1 position search ad served, fake click Destination page fake source declared redirect through to desination page
  • Augustine Fou- 5 - Video Ad Fraud Normal video ads (pre-roll) Fraudulent video ads • Not skippable • Auto-played • Played in-banner • Not viewable • Video ad impressions generated by bot (not human)
  • Augustine Fou- 6 - History Injection Source: http://searchengineland.com/g oogle-to-take-action-against-fake- search-results-injected-into-browser- history-166770 “The technique uses a method of detecting a click on the browser’s back button. When clicked, a user is not sent back to the page they came from, i.e. the search results, but rather a page that looks like search results.”
  • Augustine Fou- 7 - Lead Fraud Fake leads • Previously filled out by hand • Now, fully automated with bots using databases of real postal addresses, etc. (that trick verification engines)
  • Augustine Fou- 8 - Affiliate Sales Fraud “eBay paid Hogan a staggering $28 million in affiliate marketing sales commissions over the years, according to court papers.” Source: http://www.businessinsider.com/eba y-the-fbi-shawn-hogan-and-brian-dunning- 2013-4#ixzz34WHjnefM Source: http://articles.latimes.com/2013/apr/19/bus iness/la-fi-mo-cookie-stuffing-ebay- 20130419 “Laguna Niguel man pleads guilty in 'cookie stuffing' scam against Ebay. The online auctioneer paid Dunning’s company about $5.2 million in 2006 and 2007, the U.S. Attorney said.” Keywords: cookie stuffing
  • Augustine Fou- 9 - Why Now?
  • Augustine Fou- 10 - “Digital ad fraud is well known and well documented. However, the magnitude of it may not yet be well understood. Furthermore, ‘industry constituencies [may be] insufficiently motivated’ (Source: IAB) to act ferociously to deter and reduce these fraudulent activities.” -- Dr. Augustine Fou LinkedIn Post: The Three Reasons Ad Fraud Seems So Overwhelmingly Large Now
  • Augustine Fou- 11 - As more digital ads are placed entirely programmatically, the opportunity for fraud continues to increase. The Opportunity
  • Augustine Fou- 12 - The Motive “Highly Lucrative, Profitable The aggregate ad revenue for the sample of 596 sites was an estimated $56.7 million for Q3 of 2013, projecting out to $226.7 million dollars annually, with average profit margins of 83%, ranging from 80% to as high as 94%.” Source: Digital Citizens Alliance Study, Feb 2014
  • Augustine Fou- 13 - The Size of the Fraud Problem
  • Augustine Fou- 14 - Digital Ad Spend (IAB FY 2013) Impressions (CPM/CPV) Clicks (CPC) Leads (CPL) Sales (CPA) Search 43% $18.5B Video 7% $3.0B Lead Gen 4% $1.7B 11% Other $4.8B Source: IAB, FY 2013 Internet Advertising Report, April 2014 $36.2B Display 19% $8.2B Mobile 15% $3.7B$2.8B NOTE: figures from IAB FY 2013 ($43B annual ad spend) CPM Performance • classifieds • sponsorship • rich media • email $6.5B
  • Augustine Fou- 15 - Digital Ad Fraud Estimates Impressions (CPM/CPV) Clicks (CPC) Search $18.5B $36.2B Ad Spend Display $8.2B Video $3.0B Mobile $3.7B$2.8B (U.S. digital ad spend only) DollarsAvg Fraud Rate $4B50%Display $2B60%Video $6B30%Search $2B40%Mobile $14BTOTALS 39% Multiple sources
  • Augustine Fou- 16 - Dr. Augustine Fou – Digital Consigliere “I advise clients on optimizing advertising across all channels. One main area of focus is reducing ad waste due to fraud – fake impressions, clicks, leads, and sales.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT '95) AT AGE 23 @acfou ClickZ Articles: http://bit.ly/augustine-fou-clickz Slideshares: http://bit.ly/augustine-fou-slideshares LinkedIn: http://linkd.in/augustinefou